Orr.

DETROIT — Detroit Emergency Manager Kevyn Orr has signed and issued an order to open an investigation into the City’s two employee benefit programs. The investigation is being launched by the Inspector General and Auditor General into possible waste, abuse, fraud, and corruption possibly connected with the benefit programs. 

The move comes after the Emergency Manager’s staff held two closed door meetings with both employees and retirees, informing them about how their benefits could be cut. 

According to reports, the City’s two employee pension funds are short of funding by $3.5 billion, and retiree health care is underfunded by $5.8 billion. 

One of the pensions is for police and fire city employees, and another is for non-uniform employees. Both benefit programs are controlled by two board trustees, who are elected by employees and appointed by the mayor and city council.